Will Citibank become the 1st HIGH PROFILE VICTIM of the financial crisis? Will this put the system to the REAL TEST??? Will that be an event, which triggers a REAL MELTDOWN??? Even a CURRENCY REFORM??? Citibank is still full of BIGHEADED OVERLEVERAGED STUPID Guys who still live in DENIAL … Still a 60-times Leverage … [...]

Citibank still thinks, it can make things turn around by cutting jobs and slash costs … They might be EXTREMELY WRONG!!! They have to DELEVERAGE!!! WSJ today has some figures, which should make you scared!!! – Tangible assets, which don’t include goodwill or intangibles, are 55 times the bank’s tangible equity. J.P. Morgan Chase, by [...]

Markets did their minimum and … after the usual bounce around month end … Bad news comes in … After AIG and Freddie Mac and Allianz yesterday (old stuff) … today a new (known) hole was presented to investors … Citibank will have to buy back their auction-rate securities … at least 7 bln$ of [...]

Citibank CFO Gary Crittenden is quoted: “If current trends prevail, it is fair to conclude we will continue to have substantial additional marks on our subprime exposure this quarter.” “It’s reasonable to expect that credit costs will continue to rise through 2008, and that provisions for losses in its consumer business will also grow.” “Expects [...]

Or … in other words … much money … no brain The facts … of today only … -UBS … dissappointing figures … even after very weak expectations … says … MORE WRITE OFFS … sees MONOLINE induced ones … AUTSCH -FNM … worse than expected … but positive talk despite their view, housing market [...]

Earnings season in full swing … and despite in numbers seeing a whole bunch of dissappointments … The companies, which people were most nervous about, come in on the better end Seemingly some expectations were/are that low, that it was/is hard to beat them on the lower end. Financials and Techs leading … Here how [...]

After the negative surprise of GE … especially after they mentioned that they got hit within the last 2 weeks of March … due to the Bear Stearns turmoil … We start to understand, why the financials start to move on to clean up their act … at least a bit. And it seems to [...]

Citibank is close to announce the sale of around 12bln$ of debt. This is seen as positive and bullish … hmmmm My take: 1. This is buy-out related debt, NOT mortgage related … so they sell “better” debt 2. They lock in a loss … and free as it is leveraged debt only a small [...]